The Amount Of China Education Inequality And Income Distribution Gap And Influence Each Other

Along with the advancement of reform and opening up, high-speed economic growth, China has been constantly improve people’s living standard, but at the same time of rapid economic growth, accompanied by some problems, such as residents of income distribution gap is widening even has a polarization trend, different income classes of income gap is very big, the economic development is very uneven, some live in the bottom of the people’s life has not been improved, and so on, these problems not only affected the social harmony, also restricts the further development of the economy, in the modernization process to attach importance to and solve the problem. The government will solve the problems of large income distribution on the12th five-year plan. The expansion of income distribution gap in the income distribution gap between urban and rural areas, industry and regional income distribution gap of the income distribution gap in three aspects.Income distribution gap will lead to low efficiency, affect the sustainable development of economy, high earners are easy to take advantage of his wealth to strengthen their economic and political dominance and influence; Low-income earners are hard to resist the risk, lack of consciousness of improving efficiency. More low-income people is hard to increase demand, serious impact on the macroeconomic stability, caused the entire society’s insufficient effective needs and overcapacity, the income gap will increase economic growth and resources and the environment contradiction, too easy to cause the negative psychology of people, income gap caused by interpersonal harmony, low-income due to low income cannot afford the high cost of education, and education is an important way of promoting the formation of human capital, the low degree of education lead to hard to enter into the upper society, it is likely to have bad mood. The dangers of large income distribution gap so much, therefore, how to narrow the gap in income distribution has gradually become an important issue in current China’s economic development.Scholars to the reason of income gap had in-depth discussion, relevant theory emerge in endlessly, in general education is widely thought to be an important factor. Under the background of China’s income inequality and income inequality leads to residents affected by the equality of education received, the more serious is that, the education inequality reaction in residents income distribution gap, and lead to further widening of the income distribution, form a vicious circle. Existing literature from the education inequality of income distribution more unilaterally to study the influence of the gap, while ignoring the difference between the two-way influence, existing research also rarely consider the education inequality price factors which impact on the relationship between education yield. From this perspective, this paper studies education inequality and income distribution gap is related to the number of relationships, and considering the other factors affect the relationship between.First chapter for the preface of this article, elaborated the paper selected topic background and main reason, at the same time the education inequality and income distribution gap between the two articles in the important concept is defined, through to this article research content and methods made simple introduction and summing up the contributions of this paper and characteristics. The second chapter is literature review, system are reviewed in detail within the education inequality and income inequality in the generation transmission and generation, both in the domestic literature also including foreign literature, also includes the empirical aspects of both theory and also the education inequality measurement method, expounds the development of the education inequality measurement method, which expounds the education gini coefficient. The third chapter mainly discusses the education inequality and income inequality in the development process, in which education is not equal to institutional change from the two aspects of compulsory education and higher education, income inequality has divided into two phases, respectively, in1978before and after the analysis, and the income inequality and education inequality did some descriptive statistics, for later theoretical, empirical, suggested that lay a certain foundation. The fourth chapter use galor and zeroa for reference model is theoretically studied the education inequality and income distribution gap influence each other relations. Due to inherit the property of the different initial income, under the premise of in the credit market is not perfect, analyzed the short-term balanced, long-term equilibrium is affected by individual education choice, also consider changes in the Labour market and the government investment’s impact on the relationship between. Fifth ZhangCai in Chinese provincial data, using distributed lag model and simultaneous equations, are discussed from the point of view of the empirical relationship education inequality and income distribution gap and some factors affecting the transitive relation between them. Chapter6for theoretical research and empirical research conclusions are summarized, and the promote education equality, from the promotion of equality of income distribution, and improve the transmission mechanism of human capital, lower education properly yield four aspects put forward policy Suggestions.This paper mainly adopts the combination of theoretical and empirical analysis, supported by theory of empirical research methods.Theoretical analysis draws on galor and zeroa theory frame, analysis concluded that because of the property inherited by them, the initial endowment is different, cause laborer select level of education is different, resulting in the income distribution gap, and the income distribution gap and cause the next generation of education inequality, illustrates the education inequality and the interaction effect of income distribution gap, so the simultaneous equations should be used to analyze the relationship. Second, the analysis also shows that due to some system factors hampering the free movement of Labour, caused the imbalance of the labor market, labor market changes will affect the distribution of education and income distribution, and impact on the relationship between the two, the schematics of the policy recommendations should also consider this factor into account. Finally, considering the government spending on education to education equality and the impact of income distribution, concludes that the government put into effect on the relationship between uncertainty, at the same time regional inequality of economic and social development has led to the tendency of government spending is also different, so should also be considered in the empirical analysis to regional differences. For the empirical analysis, by a analysis of the education inequality and income inequality exists interaction transmission mechanism, so there is endogenous, with a single equation to estimate cannot estimate both very good relationship, so using simultaneous equations to estimate is better. Simultaneous equations in the model type there are structured and simplified on type, from the model of the recognition criteria on how to identify, excessive recognition and recognition, as a result of the model type, model estimate method is also different. So should first consider equation type recognition to consider what the estimation method. By the eviews software by empirical analysis the following conclusions:(1) to reduce income inequality will significantly improve the education inequality, look from the hysteresis effect, the education inequality in the current period will improve, with the decline in income gap and inequality in education is affected by the current of the income gap is the largest, but two years later in the fall in income gap has led to the development of the education inequality injustice, this is mainly by the education investment system in our country and the present situation of the education returns. Income inequality is directly affect the level of individual human capital investment, through the role of the education returns and the negative effect is reflected in the actual effect on income distribution and education. Therefore, the income gap is the direct cause of the education inequality, if not improved, according to the mechanism of the cycle are easy to form a vicious circle of "Matthew effect". Therefore, the government should pay more attention to the improvement of the education inequality, in order to promoting fair income distribution, to avoid vicious circle "Matthew effect"(2) the improvement of the education inequality did not promote the improvement of the income distribution gap, even from the perspective of a distributed lag model estimation results, in the long term education inequality reduction did not promote the decrease of the income distribution gap, the deviation of transmission mechanism of human capital is the main reason. Should straighten out the transmission mechanism of human capital in our country, that has made the improvement of the education inequality can improve the income distribution gap. (3) the education inequality and income inequality is a continuation of intergenerational transmission may exist. Some poor areas or rural areas, income is limited, to its human capital investment is insufficient, lead to influence its own improvement of income level, at the same time can lead to inadequate education of their children, their children’s human capital stock, later in the fierce market competition at a disadvantage, and thus have lower income, thus appearing intergenerational transfer, led to the education inequality and income distribution gap of vicious circle.(4) education yields and income distribution gap is highly relevant. Education yield is higher, the higher the income distribution gap, showed the education to the price of the income distribution effects are very significant, namely labor market on higher education yield, the higher the income inequality.